{The following is a guest post about finding the best life insurance policy…}

Many people find purchasing a life insurance policy stressful, but as long as you do your research you will be comfortable with the decision you make. As you know, the absence of a life insurance policy can be even more stressful due to the fact that no one can predict when they will need it.

Finding The Best Life Insurance Policy

When calculating how much life insurance you need, make sure to include both your life and death expenses. Unexpected hospital bills and funeral bills can be very expensive, so you want your policy to supply your household with enough, not only to go on living comfortably without you, but also to pay for any expenses relating to your death.

When selecting a life insurance policy, it’s best to avoid purchasing expensive riders unless you really understand and need them. Your advisor may tell you that you should add certain kinds of riders, but most of the time, you don’t need them. Typically, riders do not give you any benefits except under certain situations.

Watch out for universal life policies. The cash value of these insurances can decline over time, and what your family will be paid out will not reflect at all what you invested in this insurance. You should get a whole life policy, which guarantees your premiums and how much the insurance is going to pay out.

Focus on your health to further reduce life insurance costs. Taking actions such as quitting smoking or losing weight can have a positive impact on premiums for life insurance, as it reduces your total risk to the insurance company. Most life insurance policies require some sort of health examination, so taking steps to improve your health before the exam can significantly affect the total premium you end up paying.

Choose permanent life insurance if you want to build cash value. Building cash value in a life insurance policy helps you have extra money for the future. The insured can borrow the cash value at a low interest rate. They can also use it to pay the premiums. The cash grows tax-free, and many financial planners recommend it as a way to cover estate taxes as an element of a thorough financial plan.

An insurance plan is not a buy-it and forget-it purchase. You will need to revise your insurance plan as things change in your life and you get older. Changes in marital status, having children, or reaching retirement age are all reasons to review your plan and make adjustments.

While the process of selecting a life insurance policy may seem stressful, it is sure to be a relief once the process is completed.

When I was a kid, one of the things that I remember about home ownership is that people would have to save up for a long period of time in order to be able to put down at least 20% of the purchase price of the home as a down payment. However, over the past 10-15 years, the practice of planning a home purchase based on when you could save up a 20% down payment has essentially become obsolete.

What Is Private Mortgage Insurance (PMI)?

Because of this failure to come up with the standard down payment, more and more people began paying private mortgage insurance premiums during the real estate boom of the mid 2000s. Private mortgage insurance (or PMI) is insurance that is in place to ensure that mortgage lenders do not lose money in the case where a mortgagor is not able to repay the loan, and the full costs cannot be recovered even after a foreclosure and sale of the property.

Because of this, private mortgage insurance is usually required when the borrower is putting up less than 20% of the purchase price or appraised value of the home. The cost of your insurance will vary depending on the size of the down payment and the loan and the location of the property (like one of these retirement havens), but they typically amount to about one-half of 1 percent of the loan – which would be about $2000 a year on a $400,000 house.

PMI definitely makes sense from the lender’s perspective, since they are taking on more risk by extending a loan that is at or close to the value of the property. In some cases you will actually pay an upfront premium in addition to the ones baked into your mortgage payments.

PMI is an extra fee that can add a substantial amount to your monthly mortgage payment (especially when you consider interest, homeowner’s insurance, and taxes), and you may be required to pay this amount until the equity you have in your home reaches the twenty percent threshold.

How To Stop Paying Private Mortgage Insurance:

If you currently owe less than 80% of the value of your home and are still paying PMI, contact your mortgage company immediately for instant savings (it issupposed to be canceled automatically once you owe less than 78%). They will require proof that your equity position is stable and is more than 20%.

That “proof” will come in the form of an independent appraisal. Unfortunately, you are usually not given a choice regarding the appraiser or the total amount of the fee; but at least you get to pay for it (sometimes at a cost of $500 or more)!

If you still owe more than 80% of the value of your home, but you have enough money in savings (“enough” is relative), it may make sense to pay down your mortgage in order to stop paying these fees.

My Thoughts About PMI

To me, it doesn’t make sense to pay insurance premiums for a plan that doesn’t even cover me . I wonder how many people actually add PMI to the equation when figuring out if it’s time to buy a home. What was that? Most people don’t make any calculations when trying to buy a home? Well, then I guess they won’t mind paying an extra couple of hundred dollars (with the home prices in my state) per month in order to grab a piece of the “American dream”. Maybe you can buy a home overseas instead! 😉

Seriously, how many other types of insurance can you think of where the one paying the premium doesn’t benefit at all from the protection offered by the coverage? And to me, if a loved one benefits, then I benefit, so you can’t add any types of life insurance to that list.

If you have crunched the numbers and you can tell me that it is better for you financially to rush into buying a home with little to no down payment and paying PMI, then maybe there may be some merit to this; but as far as I can see it (in most cases that I have observed), it is a huge waste of money, and it is another cost of being financially unprepared and undisciplined!

Throughout life, you will come to points where you have to insure various items to protect their value in the case of an accident. Of all the insurance payments, you will have to make. Auto insurance will be one of the largest and most financially demanding options you must decide upon. Here are a couple of things that we might not normally consider when trying to save money on car insurance.

Simple Tips To Save Money On Car Insurance

Go With A Proven Car Insurance Provider

When choosing an auto insurance policy, look into the quality of the company. The company that holds your policy should be able to back it up, click here to get car quotes online. It is good to know if the company that holds your policy will be around to take care of any claims you may have.

You can take a look at the Better Business Bureau’s or Consumer Affairs websites in order to check for complaints against your top choices. Asking your friends, coworkers, family members, and even neighbors about their experience with certain auto insurance providers can also help you to narrow down your choices and find a reputable company.

Buy Only What You Need

Don’t fall prey to buying insurance coverage that you do not need. Research your needs on your own, or ask the insurer if it is a must that you purchase all coverage they mention to you.

One example of this would be roadside assistance coverage. If you have roadside help through some other means such as your credit card (one of many credit card benefits) or through some sort of membership elsewhere, you do not need to purchase it from your insurer.

If you own a small business requiring the use of company automobiles, vans, or trucks; business auto coverage is a must. Business auto insurance coverage can usually be added to a business insurance package made available by insurance companies. If you or your employers are driving company vehicles, it is critical that you are covered in case one of them gets into an accident.

Handling Teens and Multiple Drivers

Your teenage driver’s insurance will cost you much more than yours for a while, but if they took any formalized driving instruction, be sure to mention it when shopping for a quote or adding them to your policy. Discounts are frequently available for driving instruction, but you can get even bigger discounts if your teen took a defensive driving class or other specialized driving instruction course.

If your car is insured with multiple drivers and one of them stops using the car, notify your insurance company immediately. It can reduce your premiums significantly in many cases. Young drivers, old drivers, and drivers with bad records all boost your premium. Get them removed from your policy as soon as you can.

Using The Internet, and Trimming Coverage

Usually, you can find some of the best insurance deals on the web. This is because selling directly to customers cuts out costs, like an agent or having a ton of local offices; so the insurance companies get to keep a little more for themselves. This also will trickle down to you in the form of a small discount. There are even some companies and/or that will perform car insurance comparisons on your behalf.

Consider suspending coverage on a vehicle you are not actively driving to reduce your premium payments. Often, you can suspend coverage except comprehensive on a vehicle not being driven, which still provides protection should the vehicle be damaged while garaged or parked – although, if it is not being driven, it may not be worth the extra cost of comprehensive coverage.

However, check with any lienholder or your state to make sure you are adequately covered and complying with loan requirements before suspending coverage.

Consider A Hybrid

Hybrid vehicles are really underrated in terms of insurance prices. So if you want to save money on car insurance, you might want to look at purchasing some type of hybrid vehicle (such as the Honda NSX). Apart from the great tax savings, you will also stand out as a low-risk driver in a hybrid, and thus your insurance premiums will ultimately drop.

When it comes to purchasing a hybrid, just make sure that the added cost will be worth it when considering lower fuel costs, any tax credits you may receive, and paying less for your car insurance.

Though simple, the tips listed above could save hundreds of dollars per year on expensive auto insurance payments. The point is, take your time and calculate your costs carefully. Get ahead of the curve and be prepared for what you will need to pay before you even go to get your vehicle. Knowledge and research is the key to saving.

Another homeowner was forced to watch their house, and many possessions, burn to the ground, all because they didn’t pay the $75 “pay for spray” fee (known as a “fire subscription fee”). And, according to reports by WPSD, firefighters were right there watching as well.

Were The Firefighters Wrong?

The point of this article isn’t really to debate the actions of the firefighters in this particular case, but if you want to know my opinion, you have to read what the article revealed about Vicky Bell (the homeowner) first…

Bell and her boyfriend admitted they were aware but thought this would never happen to them.

They knew what the policy of the South Fulton fire department was, but they choose to ignore the fire subscription fee and simply take their chances. Now that their terrible gamble has come back to hurt them, they want the rules to be ignored and everyone to feel sorry for them.

I have sympathy for them because I know what it is like to make a horrible decision and live to regret it. However, they have no right to blame anyone else for their circumstance. They intentionally ignored the fee, and now they have to deal with the consequences. This is similar to the recent phenomenon of elderly foreclosure “victims” (although, sometimes even Bank of America foreclosures go wrong).

The Need For A Pay For Spray Policy

Since some of the rural areas in Obion County are too small to be able to support a fire department of their own, the city of South Fulton is kind enough to make their firefighters available to them. Instead of the residents seeing an increase in their property taxes, they are simply asked to pay an annual fire subscription fee of $75.

This way, they are helping to offset some of the operating costs of the fire department – especially since they now have the added responsibilities that come from servicing other areas. If someone doesn’t want to pay to support the fire department, then they don’t have to.

The mayor of South Fulton, David Crocker, stated that if they do not collect the fire subscription fees, then they can’t survive. He also noted that if they make exceptions to this rule, no one will ever pay the fee.

The Moral Dilemma With Pay For Spray

If a homeowner doesn’t pay the fee (whether by choice or if they forgot), then they are not able to access the services of the fire department for that year.

It is quite common for the residents of a rural community to pay a fee to the fire department of a nearby city, in order to secure their services.

As with the case of Gene Cranick in 2010 (the article I linked to above), the firefighters were simply following the rules and obeying orders. I’m sure that it was extremely difficult for them to fight their natural instincts and training, in order to properly carry out their duties.

The moral dilemma is simply the fact that they had to stand by and watch a home burn to the ground. They were not able to help by putting out the fire, or even trying to save some of the home owner’s possessions.

Every time someone who didn’t pay the fee suffers loss from a fire – and the fire department didn’t help them – there is a public outcry. Many people talk about how immoral and despicable the firefighters were, and declare that they should have helped the people despite their refusal to pay the fee when it was due.

A debate naturally ensues, between those who feel that the homeowner shouldn’t expect to get a service that he refused to pay for, and those who feel that the firefighters should have risked their jobs and lives no matter what!

I can see both sides of the argument, but I think there is something else which must be considered first.

Pay For Spray And Insurance

Here is what I wrote last year when making this comparison:

This is no different than insurance: You pay a fee (premium) for protection from a future event that may or may not happen. If the event happens, you’re covered; if it doesn’t, you don’t get your money back. No insurance company will let you wait until your house burns down to take out a policy! You must have the coverage BEFORE the incident.

Since Vicky Bell (the homeowner), decided not to take out a policy, she wasn’t eligible to file a claim [on the service] when she faced an emergency! I can’t get into a car accident without insurance, but then expect an insurance company to provide me with their service during an accident (even if I tell them that I’ll pay on the spot)! There are smarter ways to save money on car insurance.

You can’t have people decide not to pay, but be given the option to pay the fee at the time of an accident. As, Mayor David Crocker stated, doing this will remove the incentive for people to pay beforehand. This would ultimately lead to the fire department not receiving enough funds to cover the additional operating expenses associated with adding new towns to their responsibilities (unless there happens to be an abundance of fires in the rural communities).

I think we can find a way to satisfy the insurance element of it being optional, as well as the moral dilemma that comes when “uninsured” homeowners are in danger of losing their homes.

How To Fix Pay For Spray

Treat it like other emergency services. There are two emergency situations which immediately come to mind. Health problems dealt with in the emergency room of a hospital, and roadside assistance.

The great thing about both health insurance, and roadside assistance is that they greatly reduce (and in some cases eliminate) the costs associated with the emergency service. In both of these cases, you are not required to buy insurance ahead of time (this maintains the “optional” quality of the pay for spray fee).

However, if you need emergency treatment or to have your car towed, you can still access the service, but you will be charged the full cost!

The same can be done with the pay to spray fee. Give homeowners the option of paying the $75 premium at the beginning of the year. If they choose to pay it, then they will be covered for the full cost of the fire department services they consume during that year. If they don’t consume any, they don’t get their money back; as is the case now.

If someone who chooses to forgo coverage has their home catch on fire, they can still receive the service, but they will be charged the full cost! I am not sure what it costs to send a team of firefighters with trucks and expensive equipment to put out a fire, but I’m sure it’s a lot more than $75.

This way, we will never have a case where firefighters watch as a house burns to the ground. Also, most homeowners will choose to pay $75 each year for a service they most likely will not use, rather than pay thousands or tens of thousands of dollars when they actually need it.

Before the firefighters put out the fire of someone who refused coverage, that homeowner would have to agree to it. If someone doesn’t want to pay all of that money, they can choose to let their home burn to the ground.

There are probably two objections to this stipulation:

What If A Neighbor’s House Is In Jeopardy?

If there is a chance that the fire will spread to a neighbor’s home, then it must be put out, no matter what the desire of the uninsured homeowner is. They will then be billed for the full cost.

We have to make sure that one uninsured homeowner doesn’t cause a financial burden for his neighbors. This is why many states require car owners to have at least liability coverage on their vehicles.

What If The Homeowner Isn’t Home?

If the uninsured homeowner isn’t home and their house catches on fire, the fire department will automatically put it out. This will guard against it spreading while they are waiting for them to come home. Also, this is necessary to ensure that there are no unresponsive people trapped inside.

If someone was unconscious and in the middle of the road, they would immediately be rushed to an emergency room. No one would sit around and wait for them to wake up so they could be asked if they want to go, and if they agree to pay whatever the costs are.

We would do the same thing for an uninsured home that caught on fire. Err on the side of caution and take care of the emergency, even when it’s not 100% clear if the person actually wants help.

How Would The Fire Department Guarantee Payment?

This would be handled as any other unpaid debt. First, it would how up as a negative record on their credit report. Then, the fire department would simply put a lien against the house, for the amount of the debt as well as any debt-collection costs.

Think about what would happen. If he wasn’t willing to pay for the service – meaning that he was willing to lose his house and have it burn down – then he would just lose his house to the fire department instead of to the fire.

Most likely, they would have some level of insurance on their home. It can be mandated that the fire department receive their payout directly from the insurance award, unless other arrangements are made ahead of time.

On the other hand, if he actually wanted to have his house saved, he would be willing to work out a payment plan with the fire company. Then none of the debt collection measures would need to take place.

Having these procedures in place would encourage most of the residents to agree to the $75 fee (or insurance premium), since they understand the consequences. It would also ensure that no one who wanted or needed emergency services would be deprived of them, even if they don’t initially buy the coverage.

It also allows the fire department to be able to receive enough money to extend their area of service, and be fully reimbursed when they have to provide their services to someone who chose not to contract with them.

Professional indemnity insurance is a must for people in business – selling either their skills or knowledge. Also known as PI insurance, it protects a business against claims made by a third party or client, for damage or loss. This might happen if the business owner was found to be negligent in some (or all) of the services the business provided, or if the individual made mistakes in their work.

Top Five Professional Indemnity Insurance Facts

Professional Indemnity Insurance Is A Legal Requirement For Many Businesses

In fact, professional indemnity insurance is a legal prerequisite for many professions, to carry out their business legally. This includes accountants, solicitors, mortgage intermediaries, brokers, financial advisers and insurance advisers.

Increasingly, many consultants and agencies are choosing to take out professional indemnity insurance to protect their business, along with designers. This can include those in the contingent workforce, as well as those who are responsible for paying self employment tax.

Customers And Premises Both Need Cover

Another valuable type of business cover is public liability insurance, which covers the legal costs and any resulting damages from cases arising from death, injury or damage to property, on your business activity premises.

Public liability insurance is essential if you have customers on your premises, for example if you run a shop. Again, public liability insurance is a legal requirement for some businesses, including sports centers and riding stables.

Employees Must Be Covered As Well

Employers liability insurance works in a similar way, but helping businesses meet costs for legal fees and damages for employees who are hurt or made ill at work, when the employer is at fault. One fact many people don’t realize, is that employees can still claim for compensation if the business has gone into receivership or liquidation. This makes employers liability insurance compulsory, for at least £5 million of cover, although many insurance providers will offer employers liability insurance automatically for £10 million or more.

There are cases for exemption – if the business isn’t limited, if you just employ close family or are the only employee – the insurance is no longer legal.

You’ll Need To Show Risk Management

Before an insurance company will grant coverage, they will expect to see that the business has processes and guidelines in place to reduce the risk of a claim. Your insurance adviser can give advice on what these processes should look like and there are specialists who can help you present your risk correctly.

Good project documentation is an ideal way to manage risk of claims. Set out terms in contracts with clients, keep a comprehensive incident ledger and deal with any complaints fully as they arise, according to a policy.

Your Business Must Be Properly Covered

With all professional indemnity insurance, cover is granted on a claims made basis. So this means the policy will only cover those claims made whilst it’s live. This means that you should continue with a ‘run off’ cover after you plan to retire or close your business, in case any claims relating to the business operation are made by customers or employees at a later date.

Similarly, if you are looking to change your insurance provider, you’ll need to get agreement from the new provider that they’ll accept any claims from prior incidents, or arrange run off cover.

Remember too, that this is a specialist area of insurance and as such it may be valuable to go through a specialist advisor who can help you ascertain the correct requirements for your business and organize appropriate cover amounts.

In the field of insurance, there is no saving to be made from cutting corners – the legal and financial implications of inadequate insurance are too grave. Speak to an advisor with demonstrable qualifications in the field, ideally registered with professional bodies in the field and recommended.